Pledge program presents districts better interest rates on bonds
Members of the ASBSD Board of Directors received an overview of an expanded state program that increases the rating of capital outlay bonds or certificates issued to schools and provide them with better interest rates.
S.D. Health and Educational Facilities Authority Director Don Templeton shared information on the program, which was updated by the passage of Senate Bill 191 during the 2015 legislative session.
“Because of the rating advantage (offered through the program) you (school districts) save long term,” Templeton told the directors.
Download the SDHEFA presentation here or from the Publications & Forms page under the Legislative Session Documents header.
The program is optional for school districts to utilize and allows school districts to pledge State Aid payments as additional security for capital outlay bonds or certificate, which will have better interest rates due to the program’s AA+ rating.
To take advantage of the program, a school district would work with a bonding agent or banker on applying for the program and, if the district qualifies, the district’s bonding intermediary would proceed with the program with the help of the SDHEFA.
Download a Program Description PDF here or from the Publications & Forms page under the Legislative Session Documents header.
School districts can use the program for refinancing, as well as new debt.
“The program presents a great financial advantage to districts exploring a new building project or looking to refinance current bonds,” ASBSD Executive Director Wade Pogany said.
For more information on the program, contact SDHEFA Executive Director Don Templeton at firstname.lastname@example.org or at 605-224-9200 or Associate Director Dustin Christopherson at email@example.com or at 605-224-9200.
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